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| Section | Weight | Objectives |
|---|---|---|
| Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Principle of Utmost Good Faith | 11% | - Duty of disclosure and representation - Insurance Act 2015 provisions - Remedies for breach of duty |
| UK Regulatory Framework | 12% | - ICOBS rules and conduct standards - Authorisation and supervision - Role of PRA and FCA - Insurance Distribution Directive (IDD) |
| Compulsory Insurance and Legislation | 3% | - Statutory requirements for compulsory insurance - Key relevant statutes |
| Risk and Insurance | 10% | - Concepts of risk and types of risk - Risk management and control methods - Features of insurable risk |
| Contribution and Subrogation | 6% | - Right of subrogation and its limits - Right of contribution between insurers |
| Proximate Cause | 2% | - Definition and identification - Application to claims settlement |
| Consumer Protection and Dispute Resolution | 8% | - Complaints handling procedures - Financial Services Compensation Scheme (FSCS) - Financial Ombudsman Service (FOS) - Consumer Insurance (Disclosure and Representations) Act 2012 |
| Contract and Agency Law | 9% | - Essentials of a valid contract - Application to insurance contracts - Law of agency and authority |
| Principle of Indemnity | 7% | - Meaning and purpose of indemnity - Methods of providing indemnity - Average clause application - Exceptions to indemnity |
| Nature and Structure of Insurance | 14% | - Market structures and distribution channels - Purpose and benefits of insurance - Participants in the insurance market - Classification of insurance business |
| Principle of Insurable Interest | 5% | - When insurable interest must exist - Definition and legal basis - Application in different insurance types |
1. Which typo of insurer is owned by multiple policyholders?
A) A captive insurer.
B) A mutual insurer.
C) A proprietary insurer.
D) A composite insurer.
2. What is the legal standing of the Charioted Insurance Institute's Code of Ethics?
A) It has full force of Jaw except where overridden by pre-existing Acts.
B) It is to be applied in conjunction with existing Acts.
C) It has full stand-alone legal recognition.
D) It does not have the force of law.
3. If an insurer invokes the cancellation clause to cancel a policy mid-year due to a change in the risk, how much of the premium, if anything, is normally returned to the policyholder?
A) The full year's premium less a fixed nominal charge.
B) None of the premium.
C) The full year's premium.
D) A pro rata amount.
4. The main purpose of the fair treatment of customers initiative is to
A) make firms more competitive.
B) apply fixed times for responding to claims and complaints.
C) ensure all firms have a similar service standard.
D) build consumer confidence in the financial services industry.
5. How does insurable interest arise, if at all. when an insurer arranges reinsurance?
A) The insurer is considered to have insurable interest by virtue of its liability to pay claims.
B) Insurable interest does not arise.
C) Insurable interest is created by statute.
D) The policyholder is considered to have assigned the insurable interest to the insurer.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: A |
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